Department of State awards $1.39M for FXA-2500 Bladder, with REDORANGE LLC as contractor

Contract Overview

Contract Amount: $13,876 ($13.9K)

Contractor: Redorange LLC

Awarding Agency: Department of State

Start Date: 2024-02-29

End Date: 2024-05-10

Contract Duration: 71 days

Daily Burn Rate: $195/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ISB-UR-FAC-FY24-EXPANSION TANK'S FXA-2500-BLADDER RWTP-ICASS

Plain-Language Summary

Department of State obligated $13,876 to REDORANGE LLC for work described as: ISB-UR-FAC-FY24-EXPANSION TANK'S FXA-2500-BLADDER RWTP-ICASS Key points: 1. Contract value of $1.39M for a 71-day period suggests a high per-diem cost. 2. The contract was competed under Simplified Acquisition Procedures (SAP), indicating a focus on smaller procurements. 3. A single award Purchase Order was issued, raising questions about the extent of competition. 4. The product, 'Expansion Tank's FXA-2500 Bladder', falls under Fluid Power Cylinder and Actuator Manufacturing. 5. The firm fixed price contract type aims to control costs, but the short duration may limit long-term value assessment. 6. No small business set-aside was utilized, potentially impacting small business participation.

Value Assessment

Rating: fair

The contract value of $1.39M over 71 days results in a daily rate of approximately $19,543. This appears high when compared to typical service contracts of similar duration, though specific industry benchmarks for specialized equipment like bladders are not readily available. The firm fixed price structure provides cost certainty for the government, but without more detailed cost breakdowns or comparisons to similar procurements, assessing the overall value for money is challenging. The limited duration also restricts the ability to evaluate long-term performance and cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less extensive competition process than full and open competition. While the specific number of bidders is not provided, SAP awards often involve fewer than three offers. The limited competition under SAP may not have fully leveraged market forces to drive down prices, potentially leading to a higher cost than if it had been broadly competed.

Taxpayer Impact: The limited competition means taxpayers may not have received the lowest possible price for this equipment. The government's ability to secure competitive bids was constrained by the procurement method.

Public Impact

The Department of State is the primary beneficiary, receiving the FXA-2500 Bladder for its operational needs. The contract delivers a specific component for fluid power systems, likely for maintenance or new installations. The geographic impact is localized to where the Department of State intends to deploy this equipment. Workforce implications are minimal, as this is a supply contract rather than a service requiring significant labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may have resulted in a higher price.
Short contract duration makes long-term value assessment difficult.
Lack of small business set-aside could limit opportunities for smaller firms.

Positive Signals

Firm fixed price contract provides cost certainty.
The award was made to REDORANGE LLC, a known entity.
The procurement falls under a specific product category, suggesting a defined need.

Sector Analysis

The procurement of fluid power components like bladders falls within the broader manufacturing and defense industrial base sectors. The market for specialized hydraulic and pneumatic parts can be niche, with a limited number of manufacturers capable of producing to specific government standards. While exact market size for this specific component is difficult to ascertain, the overall fluid power market is substantial, driven by industrial, aerospace, and defense applications. This contract represents a small expenditure within that larger ecosystem.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements. This means that opportunities for small businesses to participate in this specific award were likely limited. The absence of a set-aside suggests that the contracting officer did not identify a specific need or opportunity to leverage small business capabilities for this particular procurement, potentially impacting the small business ecosystem's access to this contract's value.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officer and relevant procurement oversight bodies. As a Purchase Order under SAP, the oversight mechanisms are typically less intensive than for larger, more complex contracts. Transparency is limited by the nature of SAP procurements, which are not always publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State Procurement
Fluid Power Systems
Actuator and Cylinder Manufacturing
Government Supply Contracts

Risk Flags

Potential for overpricing due to limited competition.
Risk of performance issues with specialized component.
Short contract duration limits long-term value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $13,876 to REDORANGE LLC. ISB-UR-FAC-FY24-EXPANSION TANK'S FXA-2500-BLADDER RWTP-ICASS

Who is the contractor on this award?

The obligated recipient is REDORANGE LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $13,876.

What is the period of performance?

Start: 2024-02-29. End: 2024-05-10.

What is the track record of REDORANGE LLC with the Department of State and other federal agencies?

Information regarding REDORANGE LLC's specific track record with the Department of State and other federal agencies is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases like SAM.gov or FPDS to review past awards, performance evaluations (if available), and any history of contract disputes or issues. Understanding their past performance is crucial for assessing the reliability and quality of their products and services in fulfilling this current contract.

How does the per-unit cost or daily rate of this contract compare to similar procurements for expansion tank bladders?

The provided data indicates a contract value of $1.39M over 71 days, equating to approximately $19,543 per day. Without specific details on the quantity of bladders or the exact specifications of the FXA-2500 model, a direct per-unit cost comparison is not feasible. Benchmarking this daily rate against similar fluid power component procurements, especially those under Simplified Acquisition Procedures, would be necessary. However, given the specialized nature of such components, direct comparisons might be difficult, and the rate could be influenced by factors like urgency, customization, and the specific supplier's cost structure.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential overpricing due to limited competition under SAP, performance issues with the FXA-2500 Bladder, and delivery delays given the short contract duration. Mitigation strategies are implicitly tied to the contract type: the Firm Fixed Price (FFP) structure caps the government's financial exposure, and the short duration limits the period over which performance issues could manifest. However, the effectiveness of mitigation relies heavily on the quality of the product delivered and the contractor's adherence to specifications. Further mitigation would involve robust inspection and acceptance testing upon delivery.

What is the expected effectiveness of the FXA-2500 Bladder in supporting the Department of State's mission?

The effectiveness of the FXA-2500 Bladder is directly tied to its role within the Department of State's fluid power systems. Assuming this component is critical for the proper functioning of essential equipment (e.g., in vehicles, support systems, or specialized apparatus), its successful delivery and performance are vital. The contract's short duration suggests it may be for immediate needs, maintenance, or a specific project phase. Its effectiveness will be measured by its reliability, durability, and contribution to the operational readiness of the systems it supports, though this specific impact is not detailed in the award data.

How does the historical spending on similar fluid power components by the Department of State compare to this award?

Analyzing historical spending patterns for similar fluid power components by the Department of State would require access to comprehensive historical contract data. This award of $1.39M for a specific bladder type under SAP is a single data point. To assess trends, one would need to examine spending over multiple fiscal years, identify recurring needs for such components, and compare the pricing and competition levels of past awards. Without this historical context, it's difficult to determine if this award represents an increase, decrease, or stable level of spending for this category of goods.

What is the significance of the 'Fluid Power Cylinder and Actuator Manufacturing' classification for this contract?

The 'Fluid Power Cylinder and Actuator Manufacturing' National Industrial Classification (NIC) code signifies that the procured item, the FXA-2500 Bladder, is a component integral to systems that use pressurized fluid (liquid or gas) to generate force and motion. This includes hydraulic and pneumatic cylinders and actuators, which are fundamental in various machinery and equipment across industrial, defense, and transportation sectors. For the Department of State, this classification suggests the bladder is likely intended for use in equipment requiring precise control of force and movement, potentially for operational support, logistics, or specialized facilities.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Fluid Power Cylinder and Actuator Manufacturing

Product/Service Code: CONTAINERS/PACKAGING/PACKING SUPPL

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 580 VIRGINIA DR STE 135, FORT WASHINGTON, PA, 19034

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,876

Exercised Options: $13,876

Current Obligation: $13,876

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline